From the Desk #11

From the Desk #11


The number one reason for going Tiny…To save money.


Financial seems to be the number one reason from those endeavoring to go Tiny. Of course, there are save the planet, less of a footprint, all of those reasons. But most people want to know what’s in it for them. That just seems to be human nature.


Here are five steps to becoming financially free. I would like to apply these five steps to tiny houses.


Number one.


To save money you must be making money. That means we must assume that we have some income in order to save. That could be a job, or it could be some entrepreneurial activity. Many people have skills and crafts that they can turn into value for others and get paid for it. No longer do we look to get a job and stay there until retirement. Social Security may not be around for our younger generation. I recently heard that a 25-year-old’s average lifespan could be 120 years. Thus, the need for a better plan.



Number two. Spend less than you earn.


Learn to live on 70% of what you bring in.


If we can pay ourselves first, pay 10% to a savings account or a growth account. Then take 20% and work on paying down debt, eventually you will be out of debt.

In real life, the challenge that I have had is; my income being self-employed is up and down. I know it is hard because I haven’t been able to do it perfectly, but the idea is to average your annual income monthly based on your past performance and live on 70% of that. If you are serious about saving money this is a must do. This is what will separate the serious people from the ones who are just dreamers.

What helped me was having a forced savings account which I will talk about later.


Number three. Buy a home.


At the innovative housing summit in Washington DC, secretary Ben Carson said that the difference in wealth between homeowners and renters was 44. Homeowners were 44 times the net worth of renters. When you are renting you are buying a home for someone else.

I sold an 18-foot tiny home for $25,000. Because I had become I don’t-wanter, I would have owner financed it to the right person. Five years financing at 10% would’ve been a payment of $530 per month. This is what I mean buy a forced savings account. If you don’t pay the home will be repossessed. So, you are forced to pay for something that is benefiting you and growing in value over time.


This is where buying a tiny home gets exciting. The fact that a tiny home is less expensive makes it easier to afford. You may have to get creative on the purchase. Don’t get discouraged, talk to the builders/owner and work out some kind of deal, borrow from a family member or friend etc.. After all you are paying rent now; so figure out how to divert that payment to a purchase. Of the four resales of tiny homes on wheels that I know of; all of them increased in value. So, unless you pay too much even a tiny house on wheels will appreciate. These are not RVs but homes build like a site built, on a movable foundation.  Better yet, buy a tiny home with land and you will see even more appreciation.


Number four.


After you have figured out how to buy a tiny home, for yourself, now figure out how to buy one or more for investment.


Why not a tiny house hotel or a tiny house village? Using the same creative thought process, figure away to be able to invest in the Tiny House Space.  Continuing to live on 70/%, divert the 20%, once you are out of debt, to this investment. You may have to think outside the box. You may have to tap into family, friends and networks, but the idea is to do something now that will pay you for a long time or forever into the future without you having to trade time for money.

We are nearing completion of the Tiny Fishing Village. You can check it out on our YouTube channel. (link). If I take all the rental income to pay toward the payments, it will be paid for in 10 years. This is a better retirement plan. People will always need a place to live and you can do even better by making it a Tiny House Hotel on Air BnB or Home Away, if you want a little more management work.



Finally, Number Five, protect your assets from loss.


If you have assets there are people out there that will try to get them. How are you hold title to your assets and how you structure your company, if you have one, is very important. Also setting up a retirement account like a self-directed Roth IRA is a smart idea. Insurance is another way to protect against loss.


Robin Butler,



Ps. Anyone interested in partnering on a tiny house village in your area feel free to contact me.